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Office of Electricity Delivery and Energy Reliability 1 Introduction 1 Metrics and Benefits Plan Build Metric Reporting and Analysis Impact Metric Reporting and Analysis Build and impact metric data provided by the SGIG recipients convey the type and extent of technology deployment, as well as its effect on grid operations and system efficiency.

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Office of Electricity Delivery and Energy Reliability 3 DOE/Recipient Dialogue 1.Analysis Approach: Working through issues relating to measuring impacts a.Analytical methodology b.Baseline/control groups c.Underlying factors leading to results d.How to convey the results and to whom? 2.Lessons-Learned/Best-Practices: Internally and externally conveyed a.What can we learn from each other? b.How do we want to document lessons- learned and best practices for external communication? c.Are there detailed case studies that can be developed? DOE’s Interests 1.What would you like to address in a group setting? 2.What do you want to learn or share? 3.How would you like to exchange information? a.In smaller or more focused groups? b.How should we structure and support the discussion? 4.Are there issues you are NOT interested in addressing here? Recipients’ Interests DOE would like to establish a dialogue with recipients to explore peak demand the electricity consumption impacts associated with the application of AMI, pricing programs and customer systems. The outcome is to share this information across the industry.

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Office of Electricity Delivery and Energy Reliability 6 Technologies Project teams are deploying a variety of different technologies. Smart meter Provides foundation for two-way communications between utilities and customers Enables utilities to offer information, tools, and incentives for customers to reduce and shift electricity usage Field area network Displays and communicates energy usage information to customers Interoperates with appliances, lighting, and HVAC based on grid conditions and time based rate Backhaul and Head end server Collects customer meter data and transmits it to a central information center Options include broadband, cellular, wireless, and Ethernet networks Enables utilities to manage dispersed data collection Other Activities related to planning and supporting AMI deployment Includes planning, engineering costs, consulting, management, and security

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Office of Electricity Delivery and Energy Reliability 7 Peak Load Reduction Approaches DOE has seen three general applications within projects that are conducting smart grid projects related to peak demand and electricity consumption. Time based rate program Offering electricity rates ($/kWh) that vary by time of day or year, such as a critical peak pricing program, might cause customers to change electricity consumption. Direct load control program Customers enter an agreement with a utility to reduce demand by controlling selected appliances, such as air conditioners and pool pumps, during peak demand periods. Direct load control equipment can be supported by AMI communications infrastructure. Customer systems Customers gain information about and control over electricity consumption. For example, web portals provide insight into electricity consumption and programmable controllable thermostats offer control over electricity consumption.

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Office of Electricity Delivery and Energy Reliability 12 Peak Demand Reduction Change in peak demand can be calculated with hourly electricity usage data. Magnitude of peak demand change Some projects are reporting time of peak hours with their hourly electricity usage data. If they are not reporting the peak, we can determine peak hours by finding hours of maximum demand. The change in peak demand is calculated for peak hours: Example: Electricity usage for a July week with a peak pricing program We calculate the difference between hourly electricity usage at the peak to determine change in peak demand ΔP Peak

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Office of Electricity Delivery and Energy Reliability 13 Peak Shift Peak demand shift can be detected and calculated from hourly electricity usage data. Occurrence and magnitude of shift Example: Electricity usage for a July day with a peak pricing program Peak shift is determined by: 1.Calculate change in electricity usage ΔP i per each hour i: 2.For each hour where ΔP i ≠ 0, a change in electricity consumption occurred. We anticipate ΔP i ≤ 0 at peak hours and ΔP i ≥ 0 at off-peak hours when a shift occurs. In peak shifting,we expect change in hourly electricity usage at peak hours to be less than 0 because treatment should be smaller than control: ΔP i ≤ 0 In peak shifting,we expect change in hourly electricity usage at off-peak hours to be greater than 0 because treatment should be greater than control: ΔP i ≥ 0

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Office of Electricity Delivery and Energy Reliability 14 Electricity Conservation Change in overall electricity consumption can be calculated from hourly or monthly electricity usage data. Magnitude and direction of electricity usage change If a recipient reports hourly data for the 4 month period, we calculate total change: Example: Hourly electricity usage from May – August with a summer peak pricing program Alternatively, if a recipient reports monthly data for the 4 month period, we calculate total change: Example: Monthly electricity usage from April – September with a summer peak pricing program (MWh)

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Office of Electricity Delivery and Energy Reliability 15 Additional Analytical Questions What other kinds of impacts are project teams expecting, and how should we be looking for them in the metrics data? What other kinds of data or information can be shared to help the group understand impact? How are utilities operating the AMI, time based pricing programs, direct load control programs, and customer systems, and how can that shared? How are baselines and customer control groups being established? How might service area and technology configuration affect results? What kinds of “experiments” can the forum projects perform together?